Leather and Allied Products Market in Bulgaria 2016-2020

Outlook of the leather and allied products market in Bulgaria

Technavio’s market research analysts have estimated the market for leather and allied products in Bulgaria to grow at a slow but moderate CAGR of almost 1% by 2020. The rising demand from domestic market will aid in the growth of this market over the next few years. In this region, there has been a rise in the demand for leather and allied products from the domestic market due to a rise in the per capita income of Bulgarians. As per the World Bank data, in 2014, the per capita income of households increased by 2.3%, compared to 1.6% the previous years. Generally, Bulgarians are very fashion conscious and, as a result, they are spending more on luxury goods and fashion products like travel bags made from leather. This increase in the demand for luxury goods and travel bags have led to a rise in sales of leather goods in the domestic market.

Another critical factor impelling the prospects for growth in this market is the augmented demand for leather from the automotive industry. In this region, the automotive industry is one of the major end users of leather products. Leather is used in the manufacture of automotive interiors and upholstery. The recent growth of the automotive industry in Bulgaria will subsequently result in the entry of foreign vendors in the market. For example, in 2012, ALC, a South Africa-based company, invested $5 million in a project in Musachevo. The company is known for producing leather upholstery and other leather products for the automotive industry. Similarly, in 2013, China-based Great Wall Motors entered the market via a joint venture with Litex Motor.

Competitive landscape and key vendors

The market for leather and allied products in Bulgaria is characterized by the presence of a large number of regional manufacturers. Consumers in this end-use segment have a high degree of confidence in retail stores and e-commerce sites; as a result, key manufacturers are focusing on enhancing sales through these channels. This strategy was initially employed by foreign players but was later adopted by regional players.

Top vendors in the market are -

• Aiko-8
• Ariescommerce
• Bodrost
• Bulstars
• Chaika – 95
• Daks
• Fotev
• Fulmax
• Joralti
• Prince
• Sana
• Taxidermy

Product-based segmentation and analysis of the leather and allied products market in Bulgaria

• Luggage, handbags, saddlery, and harnesses
• Tanned and dressed leather, and dressed and dyed fur

During 2015, the luggage, handbags, saddlery, and harnesses segment dominated this market by accounting for an impressive market share of more than 85%. The tanning industry in Bulgaria flourished under the communist rule owing to the low cost of petrol that was being imported from the Soviet Union. However, in the early 1980s, privatization forced most of these companies to close. In 1989, the leather industry experienced a significant transformation with the emergence of numerous SMEs, which helped the tanning industry to recover. Consequently, the Bulgarian government is making concerted efforts to help in this recovery by implementing various initiatives to facilitate market growth.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the leather and allied products market in Bulgaria?
• What are the key market trends impacting the growth of the leather and allied products market in Bulgaria?
• What are the challenges to market growth?
• Who are the key vendors in leather and allied products market in Bulgaria?
• What are the market opportunities and threats faced by the vendors in the leather and allied products market in Bulgaria?
• Trending factors influencing the market shares of Bulgaria.
• What are the key outcomes of the five forces analysis of leather and allied products market in Bulgaria?

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